Aditya Birla Capital raises Rs 3,000 cr from promoters, investors

"This investment marks a pivotal moment in the journey of Aditya Birla Capital. It underscores Aditya Birla Group's commitment to our rapidly growing financial services business," group chairman Kumar Mangalam Birla said.

Diversified financial services player Aditya Birla Capital on Friday announced that it has raised Rs 3,000 crore in core capital.  This includes Rs 1,250 crore raised through a preferential issue of shares to promoter Grasim Industries and Surya Kiran Investments, as per an official statement.

The company, a part of the conglomerate Aditya Birla Group, also raised Rs 1,750 crore through a qualified institutional placement of shares, which witnessed participation from Blackrock, Capital Group, Norges Bank, Royal Bank of Canada, M&G Investments, Abu Dhabi Investment Authority (ADIA), Massachusetts Institute of Technology (MIT), Public Sector Pension Investment Board (PSP) and SBI Life Insurance, it added.

The qualified institutions will be issued 10 lakh shares of Rs 10 face value at Rs 175 each, as per a decision of the Stakeholders Relationship Committee of the Board of Directors.

The company scrip closed 1.42 per cent up at Rs 196.35 a piece on Friday.

The company, whose businesses include lending, asset management and insurance, will use the freshly raised money for augmenting the capital base, improving the solvency margin and leverage ratio and meeting the growth and funding requirements, the statement said.

"This investment marks a pivotal moment in the journey of Aditya Birla Capital. It underscores Aditya Birla Group's commitment to our rapidly growing financial services business," group chairman Kumar Mangalam Birla said.

The company's chief executive Vishakha Mulye said it is committed to driving quality and profitable growth, harnessing the power of data, digital and technology to serve customers better and create long-term value for its stakeholders.

The statement it has embarked on a transformational journey to accelerate growth across businesses and improve profitability.  The company managed Rs 3.6 lakh crore of assets as of March 31, 2023, which included lending assets under management of Rs 94,364 crore and a gross written premium of Rs 17,787 crore. It had reported a net profit of Rs 2,057 crore in FY23, excluding fair value gains.